Kids aren’t the only ones using the Internet to download shared music files. Many adults are snagging melodic freebies too. And—if they happen to be working for your company, making use of your company’s network, and storing their purloined melodies on your company’s computers—you could wind up singing a less-than-happy tune, says intellectual property attorneys at Miller Canfield.

A number of Internet sites contain shared music files, and the technology to quickly download them is readily available. “But just because the process is quick and easy doesn’t make it legal under federal copyright laws,” said Kathy Ossian , head of Miller Canfield’s Information Technology Team.

The recent U.S. Supreme Court decision in MGM v. Grokster should cause businesses to be even more diligent about this issue. In Grokster, the Court held that distributors of peer-to-peer sharing software were vicariously liable for the software users' copyright infringement. Music industry groups are expected to ask courts to expand the Grokster holding to include companies and universities that are aware of, but not taking steps to discourage or prevent, illegal downloading by its employees or students.

"A number of universities are advising their students that file sharing will result in the loss of Internet privileges—the University of Florida even created its own software program that shuts off network access after warning students who persist in downloading,” noted Ossian.

What should you do to discourage the practice of pirating? Miller Canfield offers some steps you can take:

•Establish an enforceable company policy that prohibits downloading music and other copyrighted materials from the Internet, and allows your company to impose appropriate sanctions for violations

•Make certain each employee acknowledges and agrees to the policy upon hiring, or at the time the policy is introduced

•Periodically post reminders of your policy

•Review computer network logs to determine whether employees are visiting sites that offer shared music files

•Remove any shared music files you find on your company’s network

•Consistently impose sanctions for violations of your policy

•Employ the safe harbor provisions of the Digital Millennium Copyright Act to establish your company’s immunity

The 340-attorney law firm of Miller, Canfield, Paddock and Stone, P.L.C. was established in Detroit in 1852 and has offices in Ann Arbor, Detroit, Grand Rapids, Howell, Kalamazoo, Lansing, Monroe, and Troy, Michigan. Other offices are located in New York City, Pensacola, Florida, Washington, D.C., Windsor, Ontario, and in Gdynia, Katowice, and Warsaw, Poland.